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How did governments promote import substitution industrialization (ISI)?

Governments promoted import substitution industrialization (ISI) by protecting new domestic industries from foreign imports and encouraging the import of capital and technology. They often used tariffs, exchange controls, exchange-rate manipulation, and import licenses for products needed in manufacturing. Government investment also supported intermediate and capital-goods sectors. Domestic private businesses made import substitutes, while transnational corporations supplied high-tech goods that could not yet be produced locally.